The US Treasury Department has conducted the first global assessment of DeFi services and their risks. He published a press release on April 6 to present the conclusions of his study. Also, he invited the private sector to take these into account to make the most of the potential advantages of DeFi.
The government is invited to fight against the risks of illicit finance
With a view to eliminating the risks of illicit finance in DeFi, the US Treasury previously announced a study. This aimed to assess the risks associated with the criminal use of DeFi. That said, the US Treasury has just released the results of its investigation in a statement. The press release states that DeFi services are used to launder funds related to illicit activities. They are mainly “cybercriminals, ransomware attackers, scammers and North Korean hackerswho use it.
The US Treasury cited a key element that makes DeFi vulnerable to illicit activity. It’s about “no respect» regulations on the fight against money laundering and the financing of terrorism (AML/CFT). Under its terms, the U.S. Treasury calls on the government to strengthen regulatory oversight of AML/CFT. He clarified that the results of its evaluation could be useful to the government in this regard.
The Treasury Department also recommended that the government publish guidance for the private sector. He also proposes to him to evaluate the improvements in order to fill the gaps of the regulation as regards AML/CFT.
The private sector must tackle the risks to profit from DeFi!
The US Treasury has invited the private sector to use the results of its study for the development of future measures. Indeed, private actors should set up their own Risk Mitigation Strategies for Illegal Activities in DeFi. It is in this way that they will succeed in exploiting the “potential benefits of DeFi services“, according to the Treasury.
Brian E. Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence, issued a statement on the subject. He said the private sector must comply with AML/CFT regulations and sanctions obligations.
The publication of the US Treasury comes as regulations related to cryptos are not unanimous in the United States. Currently, the SEC opposes lawmakers putting in place new rules.
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